In Order to Control Compensation Costs,administrators of Merit Pay Programs

question 14

Multiple Choice

In order to control compensation costs,administrators of merit pay programs must closely monitor the compa-ratio and the:

• A) number of pay grades in the pay structure.
• B) an individual's performance ratings.
• C) number of new hires in the company.
• D) company's stock price in the financial year.
• E) average pay of the area where the organization is functioning.

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Definitions:

Median

A measure of central tendency that identifies the middle value in a dataset when the numbers are arranged in ascending or descending order.

Central Tendency

A measure that represents the center point or typical value of a dataset.

Average

A statistical measure that determines the central tendency of a set of numbers by dividing the sum of all numbers by the count of the numbers.

Outliers

Those scores in a distribution that are noticeably much more extreme than the majority of scores. Whether a score is an outlier or not is usually an arbitrary decision made by the researcher.